Tiandi Color Steel exports its flat pack container, shipping container, and prefabricated container houses to many parts of the world, and so its customers and those who are inclined to buy its containers will probably ask such a question: “What are the prices of your container houses?”
First, how does the container house builder set the cost of each container house it builds? This is not an easy question to answer because so many different elements influence prices. However, Tiandi can sincerely and carefully explain this question step by step.
1. Our price estimation process.
The customer needs to send us a container house plan. According to this plan, we will make an estimation for it. Each pricing needs the senior executive to authorize each salesperson to reach a final price according to material cost, business expense (factory and office expenditures), and some reasonable profits we need to gain. Then, it will be recorded in a written form, and the oral price discussion is not legally effective because lots of uncertain elements are included in it. For example, if you buy many, you will be given discounts. If the payment method is simple and fast without too many complicated rules, you may be charged lower prices too. For example, if you pay us cash. One more announcement, Tiandi’s container house prices are not subject to seasonal alterations. Besides this explanation, there are also other situations that influence the company’s container houses’ costs.
2. Raw material prices influence our pricing.
Now the raw materials prices of container houses don’t fluctuate sharply, and their products’ prices are nearly the same as those of last year. Generally speaking, we offer prices according to each customer’s needs and designs. We adjust prices according to the demand of the whole market and refer to our rivals’ prices so that each of our container houses becomes more competitive. Lots of manufacturers prefer to compete with low prices, but obviously, this is vicious in terms of the product cost because different designs and alterations will make different prices. Tiandi’s principle is: to use the lowest cost to build the most beautiful and suitable container house for each buyer.
How to decide the cost of each container house on earth for Tiandi? To best serve each of our customers, we will choose the excellent suppliers to do the job. The cost of building container houses doesn’t only include human labor costs but also eating, accommodation, transport, and other costs if we need to help install container houses abroad. At the same time, the cost also includes our daily costs, staff income, and basic maintenance expenses. Another important element is the costs of its raw materials, including paint, steel, corner post, wood floor, window, switches, sockets, etc.
Tiandi’s containers can be recycled. When one project is accomplished, and another needs them, you can easily move them away, which saves you so much money and time. Moreover, they are environmentally friendly and can save energy.
3. The functions of each house are very important.
Next, Tiandi decides each container house’s cost by its functions. If you want to build a warehouse with our containers, you don’t have to remove all the infrastructure inside it, but you only need to simply install it. If you need to build an office, you will need a whole set of infrastructure so that the basic work needs can be satisfied, and this will have more requirements for the installation. And so the cost might be higher.
4. Exchange rate may be the hurdle of low prices for us.
Before reaching an agreement, we will have a deep discussion with each customer so as to learn the ultimate needs of each customer and what we do about the project. If we raise the price, it is probably because of the fluctuations in the exchange rate, which may have a big influence on our pricing.
5. The payment methods that Tiandi applies.
Last year, the exchange rate from RMB to USD fell, but everything seems to be right this year. We offer each customer prices either in RMB or in USD, and so our offers are relatively stable. We usually offer two methods of payment: FOB Shanghai or CIF destination port. Our factory is located in Wujiang of Suzhou, only about 90 km from Shanghai Port. Therefore, our containers can be directly shipped to the port and loaded onto the ship, and this saves some mainland shipping expenses.
Tiandi has one 20 inches office container, and its offer to the outside is FOB Shanghai 3,300 USD. The offer principle Tiandi applies is according to the offers of its ceiling, floor, and wallboard materials. The offers above are prices, including tariffs. Therefore, Tiandi asks each customer to have their own requirements or provide each plan’s offer directly. Or otherwise, no matter how excellent each of our staff is, they will never make a reasonable decision.
What’s the cost of each container house of Tiandi on earth? Indeed, it depends on your personal requirements. One 20 inches gray-white little box can cost 3,300 USD or even more. That’s to say; different choices will decide different prices. However, our method is the same. Helped with our accurate algorithms, we will help you build a more economical container house.
Author: TD Container
Publication Date: 7/29/2015
